By Esther Ososanya
The Enugu Electricity Regulatory Commission (EERC) has reduced the electricity tariff for Band A customers from ₦209 per kilowatt-hour to ₦160/kWh.
The new rate takes effect on August 1, 2025. The order was issued to MainPower Electricity Distribution Ltd under EERC Order No. EERC/2025/003 titled “Tariff Order for MainPower Electricity Distribution Limited 2025”.
Why the Tariff Was Reduced
The commission explained that the decision was based on cost analysis and aimed at matching the Enugu State government’s subsidy on power generation. This move is intended to make electricity more affordable for residents.
Law Gives State Regulatory Power
The tariff review follows the Enugu State Electricity Law of 2023, signed by Governor Peter Mbah in September 2023. The law came after the 2023 Constitutional Amendment, which gave states control over electricity matters within their borders. This new state law replaced the Electric Power Sector Reform Act of 2005.
How EERC Justified the New Tariff
EERC Chairman Chijioke Okonkwo said the commission reviewed MainPower’s full cost structure using the Tariff Methodology Regulations 2024 and the Distribution Tariff Model.
“We reviewed their entire costs and got an average price of ₦94,” he said.
Federal Support Lowers Generation Costs
Okonkwo explained that the lower cost was possible because the federal government subsidises power generation. Currently, it charges only ₦45 instead of the actual ₦112. This brought the average cost to ₦94, which EERC used to support the reduced tariff for Band A.
No Change for Other Bands
The new tariff only applies to Band A customers. Rates for Bands B, C, D, and E will remain unchanged for now.
The announcement has sparked mixed reactions. Some welcomed the decision, while others criticised it.
ALSO READ: Dangote: Power, Policy Failures Stalling Africa’s Industrial Growth
GenCos Oppose the Cut
Joy Ogaji, CEO of the Association of Power Generation Companies (APGC), rejected the move. She argued that the federal government is not subsidising electricity but rather accumulating debt. “There is no FGN policy on subsidies. It’s debt accumulation! If anyone has the proposed policy document, kindly share it publicly,” she stated.
Ogaji added that Nigeria’s electricity debt stood at ₦4 trillion by the end of Q1 2025.
Despite the criticism, other stakeholders in the power sector have welcomed the tariff cut. For many residents in Enugu, the reduction is a much-needed relief from high electricity costs.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.